TCS, Infosys, and HCL Tech shares tumble up to 3% amid profit booking; check details

TCS, Infosys, HCL Technologies and other major IT stocks witnessed selling pressure today after positive traction in the previous two trading sessions. TCS shares declined 1.7% intraday on NSE to a day low of ₹3,101 apiece.

TCS is in the news after the company created a new AI and Services Transformation unit and appointed Amit Kapur as Chief AI and Services Transformation Officer, effective September 1. The IT major aims to deepen its AI domain offering through this new unit.

An additional 25% US trade tariffs on Indian exports came into effect on August 27, which is negative for Indian markets. Although the IT services industry is not impacted by the latest tariffs, but cascading impact of a fall in broader markets also impacted the IT stocks.

Meanwhile, shares of Infosys, Wipro and HCL Tech, LTI Mindtree and others are down between 1 and 3% today, giving away the previous two days' gain after US Federal Reserve Chair Jerome Powell hinted at an interest rate cut in the upcoming meetings.

Experts believe that the US Fed rate cut could revive technology spending, leading to an increase in deal flows for Indian IT companies in the coming months.

Recently, JP Morgan gave upbeat commentary on TCS and expects growth recovery from the second half of FY26. TCS could see improvements in margins and should benefit from any recovery in business sentiment.

IT stock performance

So far this year, IT stocks have delivered subdued returns to investors. TCS stock is down over 24% so far in 2025, while Infosys, Wipro, Tech Mahindra, and HCL Tech are down between 16 and 25% YTD. Benchmark NIFTY IT index has declined nearly 18% amid US recession fears, which reduced IT spending and new order wins for the Indian companies. Meanwhile, the rise of AI technology has also slowed demand for traditional IT services.